Which of these is NOT a function of the US Commerce Department regarding encryption?

The function of the US Commerce Department concerning encryption primarily involves regulating its export, setting standards for encryption, and providing licenses for software export to ensure compliance with national security concerns and trade regulations.

In terms of these functions, the department has a significant role in overseeing the export of encryption technologies, setting technical standards that govern encryption practices, and issuing licenses for exporting software that employs encryption to ensure that it aligns with US export control laws.

Exempting software from local laws, however, is not a function of the US Commerce Department. The department does not have the authority to exempt software — including encryption software — from local laws or regulations. Each jurisdiction has its own legal framework, and compliance with local laws remains the responsibility of the software developers and exporters, making this answer the correct choice.